The IFRS for SMEs is a self-contained Standard, incorporating accounting principles that are based on full IFRSs but that have been simplified to suit The definition in the context of the IFRS for SMEs is of selecting their new IFRS accounting policies and applying the guidance in IFRS 1. Financial instruments under IFRS – A guide through the maze High-level summary of IAS 32, IAS 39 and IFRS 7, updated in June 2009. 2 Entities who have operations or investments that are based or conducted in a different country Medium-sized Entities (IFRS for SMEs), an alternative framework that can be applied by eligible entities in place of the full set of International Financial Reporting Standards (IFRSs) in issue. GAAP and IFRS also differ on inventory reversal write-downs and costing formulas. Accounting framework and first-time adoption (Sections 1, 2, 3 and 35) 10 Can I use the IFRS for SMEs? 2. Under IFRS for SMEs, the FIFO and weighted average cost assumptions of cost flow may be used for inventory valuation purposes, but the LIFO cost flow assumption may not be used. IFRS for SMEs in your pocketApril 2010 2 Abbreviations 4 IASB structure 5 Members of the IASB 7 IASB due process 9 IASB contact information 10 IFRS for SMEs– resources available from the IASB 11 Background to the IFRS for SMEs 12 Full IFRS vs. IFRS for SMEs 13 Summaries of individual sections of the IFRS for SMEs 14 Section 1: Scope and application 14 Similarities and differences – A comparison of ‘full IFRS’ and IFRS for SMEs 3 Contents Introduction 5 Executive summary 7 1. The International Financial Reporting Standards (IFRS) are more about policies than anything else. 2 | PFRS FOR SMALL ENTITIES Section 1 - Scope of the Framework 1 This Framework is intended for use by small entities as defined by the Philippine Securities and Exchange Commission. Classes of current inventories [abstract] Abstract : ifrs-smes:ClassesOfInventoriesAbstract: 420: Current inventories held for sale: Concept (Monetary) As Of: Debit: ifrs-smes:InventoriesHeldForSale: 421: Current work in progress: Concept (Monetary) As Of: Debit: ifrs-smes:WorkInProgress: 422 continued 3 But • IASB defines SMEs o do not have public accountability (PA) o publish general purpose financial statements (GPFS) • ¶3.3 requires an explicit statement of compliance with the IFRS for SMEs Standard • ¶1.5 prohibits an entity that has PA from asserting compliance with the IFRS for SMEs Standard 3 2,500 pages for full IFRS and 25,000 pages for U.S. GAAP. IFRS for SMEs – Pocket guide 2009 ii The term ‘small and medium-sized entities’ has different meanings in different territories. For existing IFRS … IFRS for SMEs is not some severely scaled-down standard designed for third world countries, but a comprehensive principles-based standard. IFRS for SMEs is written so that it is complete in itself and contains all the mandatory requirements for SME financial statements. While these two systems are different in many ways, they have some similarities for inventory costing. IFRS For SME are not a new set of standards—they are simplifications of existing IFRSs to meet the accounting and reporting needs of SMEs. Provides specific considerations for US market. Inventory Valuation – Inventory under IFRS is valued at lower of cost or selling price less cost to sell (net realizable value). Introduction. 2 ifrs for smes illustrative financial statements This publication has been prepared for illustrative purposes only and does not constitute accounting or other professional advice, nor is it a substitute for reference to the source standard, interpretations and legislative requirements. 8 Which one of the following is a characteristic of accounting under IFRS for SMEs?